Submitted a proposal to the board of directors of 21st Century Holding expressing its interest in a potential business combination
Homeowners Choice, a Florida-based provider of homeowners’ insurance, has delivered a letter to the board of directors of 21st Century Holding Company, expressing its interest in a potential business combination between the two companies.
In the letter addressed to Bruce Simberg, board chairman of 21st Century, Homeowners Choice board chairman, Paresh Patel proposes to offer $1.00 in cash and 0.5 share of Homeowners Choice common stock for each share of 21st Century common stock.
Based upon HCI’s October 9, 2009 closing price of $8.60, the proposed offer values 21st Century shares at $5.30 per share, a premium of approximately 36% over 21st Century’s October 9, 2009 closing price of $3.89.
Mr. Patel said: We believe a combination of the two companies would create a premier Florida-based insurance company mutually benefitting our companies, shareholders and employees while creating an entity stronger and better able to pursue growth. We hope that the 21st Century board will exercise its fiduciary duties and engage in a complete and careful review of our expression of interest and give it the serious consideration it deserves. We believe the business combination is in the best interests of all stockholders and look forward to a prompt and favorable reply from the 21st Century board so Homeowners Choice can proceed on a mutually acceptable and friendly basis.